Parent of Pacific Trust Bank posts profit

The parent of Pacific Trust Bank of Chula Vista posted a profit in its fourth quarter, reversing a loss for the same quarter last year.

The bank made $1.2 million in the quarter after paying dividends to preferred shareholders, compared with a $851,000 loss for the same quarter last year. On a per share basis, the bank made 15 cents. Last year, it lost 20 cents.

The bank raised $60 million in a private stock placement in the quarter led by COR Capital. Part of the money was used to repay $19.3 million in Troubled Asset Relief Program, or TARP, funds to the U.S. Treasury.

The bank is expanding its branch network, which current stands at nine locations countywide. It purchased the former San Diego National Bank branch in La Jolla and plans to open an office there in the first quarter. It also has an agreement to buy the shuttered San Diego National Bank branch in San Marcos. San Diego National was taken over by U.S. Bancorp a year ago in a deal orchestrated by federal regulators.

Pacific Trust's parent company, First PacTrust Bancorp, recently hired Gregory Mitchell as new chief executive. Mitchell formerly was with California National Bank, a $7 billion Los Angeles financial institution. He also worked in investment banking and served with the U.S. Office of Thrift Supervision, which regulates savings and loans.

Hans Ganz, former CEO of the Bancorp, is staying on with the institution as head of the Pacific Trust Bank itself.

For the full year, the bank reported net income of $1.9 million after preferred dividends, compared with a $2 million loss the prior year. The bank ended the year with assets of $861 million, down from $893 million in 2009. Loans stood at $678.2 million, a decrease from $748.3 million at the end of 2009.

Pacific Trust remains well capitalized under federal guidelines.

The bank released results Tuesday after markets closed. Its shares gained 8 cents to $14.51 in midday trading Wednesday on the Nasdaq.